Zambia Sees GDP Accelerating to 6% in 2027, Fastest Since 2021

Zambia expects its economy to expand by 6% next year, the fastest pace since 2021, with copper output in Africa’s second-biggest producer of the metal set to surpass 1 million tons, the finance ministry said.

Gross domestic product is then set to expand further in 2028, to 7.5%, the ministry said in a 2027-29 medium-term budget plan published over the weekend.

Record-high prices for the metal used in electric wiring are boosting Zambia’s economy at a time when a period of stable policies have attracted billions of dollars in mining investment, helping to push up production.

That in turn is helping to drive a turnaround in the economic fortunes of the southern African nation that’s emerging from a painful, years-long debt-restructuring process.

Restored investor confidence has allowed the government to increase reliance on local-currency debt markets, with yields falling sharply across the curve. Zambia now intends to introduce a 20-year government bond to further extend the yield curve, the finance ministry said in its medium-term plan.

Here are some key figures from the document:

Real GDP growth (%)67.57.1Copper production (million tons)1.081.251.4Fiscal balance (% of GDP)-2.9-2-1.4